Federal rebate guide

First-Time Home Buyer GST/HST Rebate Calculator

The federal first-time home buyer GST/HST rebate can materially change the economics of a new purchase, but buyers still need to know whether the builder credits it at closing or whether the cash arrives later.

Open the full cash-to-close calculator

Short answer

For eligible first-time buyers, federal GST/HST relief can reduce tax on a new home up to the $1M full-relief threshold and phases out before $1.5M. The cash-to-close question is whether the builder credits that amount at closing or the buyer claims it after closing.

What does this page answer?

Estimate the federal first-time home buyer GST/HST rebate and see how Ontario new-build rebate timing can affect cash needed at closing.

Full federal relief is modelled up to the $1M threshold and phased out before $1.5M.
The calculator flags spouse/common-law ownership and primary residence assumptions.
Cash-to-close scenarios show the difference between builder-credit and claim-later timing.

Search intent: Buyer wants to estimate the new federal first-time buyer GST/HST rebate and understand whether it lowers closing cash.

Why does the federal rebate belong inside cash-to-close?

A rebate estimate is not enough for closing planning. If the credit appears on the builder statement, it can lower the amount wired to the lawyer. If it is claimed later, the buyer may still need the cash on closing day.

Which details should buyers verify?

First-time buyer status, spouse/common-law ownership history, occupancy intent, agreement date, and closing timing can all change the rebate path. The calculator keeps those assumptions visible so users can ask a builder or lawyer precise questions.

Example federal relief estimate

Purchase price	$950,000
Estimated federal GST relief	$47,500 Before builder-treatment timing
Cash-flow issue	Credit now or claim later

Sources reviewed

Policy and data sources

confirmed CRA first-time home buyers' GST/HST rebate federal Last reviewed 2026-04-25 confirmed Finance Canada GST relief backgrounder federal Last reviewed 2026-04-25

Quick questions

Is the first-time buyer GST/HST rebate the same as the land transfer tax rebate?

No. They are separate programs with different rules, amounts, and claim mechanics. This site models them separately in the closing ledger.

Does the rebate always reduce cash needed at closing?

Not always. If the builder credits or assigns the rebate at closing, it can reduce closing cash. If the buyer claims later, cash needed at closing may be higher.